Profits
Consolidated net sales of fourth quarter 2009 was 54.1 mil. kroons/3.5 mil.
euros (62.5 mil. kroons/4.0 mil. euros in same period of 2008) representing a
13.4% decrease on the fourth quarter compared to fourth quarter 2008. The
Group's gross margin in the fourth quarter of 2009 reached 20.0% compared to
19.6% in the fourth quarter of 2008. Consolidated operating profit amounted to
2.5 mil. kroons/161 thousand euros (3.8 mil. kroons/246 thousand euros loss in
2008). The consolidated operating margin of net sales was 4.7% (-6.2% in Q4
2008). Profit before tax amounted to 2.3 mil. kroons/148 thousand euros in Q4
2009 (4.4 mil. kroons/281 thousand euros loss in Q4 2008).
Consolidated net profit amounted to 2.3 mil. kroons/144 thousand euros, compared
to net loss 4.4 mil. kroons/281 thousand euros in Q4 2008), and the net margin
was 4.2% (-7.0% in Q4 2008). In Q4 2009, the Group's return on equity was 3.2%
(-6.2% in Q4 2008) and return on assets was 1.7% (-2.7% in Q4 2008).
Position of financial statement
As of the end of 2009 the total assets of Viisnurk amounted to 132.8 mil.
kroons/8.5 mil. euros (31.12.2008: 163.8 mil. kroons/10.5 mil. euros). The
liabilities of the company accounted for 46% (31.12.2008: 57%) thereof, i.e.
61.3 mil. kroons/3.9 mil. euros (31.12.2008: 92.6 mil. kroons/5.9 mil. euros).
Receivables and prepayments have decreased by 0.8 mil. kroons/0.1 mil. euros
i.e. 4% decrease with 12 months.
Inventories decreased by 26.2 mil. kroons/1.7 mil. euros to reach 41.9 mil.
kroons/2.7 mil. euros at 31 December 2009. (31.12.2008: 68.1 mil. kroons/4.4
mil. euros). The decrease of amount of inventory was one of the main targets to
pass crisis and assure liquidity. Property, plant and intangibles decreased by
3.3 mil. kroons/0.2 mil. euros.
Short-term loans decreased by 9.7 mil. kroons/0.6 mil. euros and amounted in 31
December 2009 8.0 mil. kroons/0.5 mil. euros (31.12.2008: 17.7 mil. kroons/1.1
mil. euros). Supplier payables, tax liabilities, other payables, including
payables to employees, and provisions amounted to 22.9 mil. kroons/1.5 mil.
euros (31.12.2008: 43.8 mil. kroons/2.8 mil. euros). Current and non-current
liabilities decreased by 31.3 mil. kroons/2.0 mil. euros to 61.3 mil. kroons/3.9
mil. euros (31.12.2008: 92.6 mil. kroons/5.9 mil. euros).
Divisional review:
Net sales by business segments
--------------------------------------------------------------------------------
| | th. EEK | th. EUR | % of net sales |
--------------------------------------------------------------------------------
| | Q4 2009 | Q4 2008 | Q4 2009 | Q4 2008 | Q4 2009 | Q4 2008 |
--------------------------------------------------------------------------------
| Furniture | 31,155 | 37,074 | 1,991 | 2,369 | 57.6% | 59.3% |
| Factory | | | | | | |
--------------------------------------------------------------------------------
| Skano | 8,667 | 12,127 | 554 | 775 | 16.0% | 19.4% |
--------------------------------------------------------------------------------
| Building | 18,250 | 18,683 | 1,167 | 1,194 | 33.7% | 29.9% |
| Materials | | | | | | |
| Division | | | | | | |
--------------------------------------------------------------------------------
| Elimination | (3,952) | (5,377) | (253) | (343) | (7.3%) | (8.6%) |
--------------------------------------------------------------------------------
| TOTAL | 54,120 | 62,507 | 3,459 | 3,995 | 100.0% | 100.0% |
--------------------------------------------------------------------------------
Net sales by geographical segments
--------------------------------------------------------------------------------
| | th. EEK | th. EUR | % of net sales |
--------------------------------------------------------------------------------
| | Q4 2009 | Q4 2008 | Q4 2009 | Q4 2008 | Q4 2009 | Q4 2008 |
--------------------------------------------------------------------------------
| Finland | 21,063 | 21,058 | 1,346 | 1,346 | 38.9% | 33.7% |
--------------------------------------------------------------------------------
| Estonia | 12,959 | 16,947 | 827 | 1,084 | 23.9% | 27.1% |
--------------------------------------------------------------------------------
| Russia | 10,129 | 10,816 | 649 | 691 | 18.7% | 17.3% |
--------------------------------------------------------------------------------
| Ukraine | 3,268 | 4,541 | 208 | 289 | 6.0% | 7.3% |
--------------------------------------------------------------------------------
| Lithuania | 1,717 | 2,714 | 110 | 174 | 3.2% | 4.3% |
--------------------------------------------------------------------------------
| Latvia | 1,552 | 2,381 | 99 | 153 | 2.9% | 3.8% |
--------------------------------------------------------------------------------
| Sweden | 1,427 | 732 | 92 | 46 | 2.6% | 1.2% |
--------------------------------------------------------------------------------
| Kazakhstan | 607 | 1,787 | 39 | 114 | 1.1% | 2.9% |
--------------------------------------------------------------------------------
| Germany | 377 | 522 | 24 | 33 | 0.7% | 0.8% |
--------------------------------------------------------------------------------
| Portugal | 114 | 634 | 8 | 41 | 0.2% | 1.0% |
--------------------------------------------------------------------------------
| Other countries | 907 | 373 | 57 | 24 | 1.7% | 0.6% |
--------------------------------------------------------------------------------
| Total | 54,120 | 62,505 | 3,459 | 3,995 | 100.0% | 100.0% |
--------------------------------------------------------------------------------
Regarding the markets, turnover has decreased in Baltic States and Ukraine. Sale
in Finland and Russia has remained to same level as Q4 2008.
Gross profit by business segments
--------------------------------------------------------------------------------
| | th. EEK | th. EUR |
--------------------------------------------------------------------------------
| | Q4 2009 | Q4 2008 | Q4 2009 | Q4 2008 |
--------------------------------------------------------------------------------
| Furniture Factory | 4,739 | 2,981 | 303 | 191 |
--------------------------------------------------------------------------------
| Skano | 4,025 | 6,342 | 257 | 405 |
--------------------------------------------------------------------------------
| Building Materials | 2,012 | 2,858 | 129 | 183 |
| Division | | | | |
--------------------------------------------------------------------------------
| Elimination | 52 | 97 | 3 | 6 |
--------------------------------------------------------------------------------
| TOTAL | 10,828 | 12,278 | 692 | 785 |
--------------------------------------------------------------------------------
Profit by business segments
--------------------------------------------------------------------------------
| | th. EEK | th. EUR |
--------------------------------------------------------------------------------
| | Q4 2009 | Q4 2008 | Q4 2009 | Q4 2008 |
--------------------------------------------------------------------------------
| Furniture Factory | 3,305 | 796 | 211 | 51 |
--------------------------------------------------------------------------------
| Skano | (2,402) | (5,305) | (153) | (339) |
--------------------------------------------------------------------------------
| Building Materials | (671) | (792) | (43) | (51) |
| Division | | | | |
--------------------------------------------------------------------------------
| Elimination | 2,292 | 1,453 | 146 | 93 |
--------------------------------------------------------------------------------
| TOTAL | 2,524 | (3,848) | 161 | (246) |
--------------------------------------------------------------------------------
| Net financial costs | (201) | (541) | (13) | (35) |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAXES | 2,323 | (4,389) | 148 | (281) |
--------------------------------------------------------------------------------
| Income tax | (69) | 0 | (4) | 0 |
--------------------------------------------------------------------------------
| NET PROFIT | 2,254 | (4,389) | 144 | (281) |
--------------------------------------------------------------------------------
Furniture Division
The net sales of AS Viisnurk Furniture Division in fourth quarter amounted to
36.1 mil. kroons/2.3 mil. euros (2008: 35.0 mil. kroons/2.2 mil. euros). As
compared to the previous year the sales of the division has increased by 1.1
mil. kroons/0.1 mil. euros (3.1%).
Furniture Retail - Skano
AS Viisnurk retail business is operated by a private limited company OÜ Skano
and its subsidiaries in Latvia, Lithuania and Ukraine. Skano has totally 9
stores in Tallinn, Pärnu, Riga, Vilnius (2), Kaunas, Kiev, Donetsk and Kharkiv
at 31.12.2009. The store in Odessa was closed in Q4 2009 and removed into Kiev,
where it will be open at Q1 2010.
Retail sales by countries
--------------------------------------------------------------------------------
| | th. EEK | th. EUR | % of net sales | Number of |
| | | | | stores |
--------------------------------------------------------------------------------
| | Q4 | Q4 | Q4 | Q4 | Q4 | Q4 | 31.12. | 31.12. |
| | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 09 | 08 |
--------------------------------------------------------------------------------
| Estonia | 2,676 | 3,580 | 171 | 229 | 30.9% | 29.5% | 2 | 2 |
--------------------------------------------------------------------------------
| Latvia | 1,067 | 1,794 | 68 | 115 | 12.3% | 14.8% | 1 | 1 |
--------------------------------------------------------------------------------
| Lithuan | 1,771 | 2,453 | 113 | 157 | 20.4% | 20.2% | 3 | 3 |
| ia | | | | | | | | |
--------------------------------------------------------------------------------
| Ukraine | 3,153 | 4299 | 202 | 275 | 36.4% | 35.5% | 3 | 4 |
--------------------------------------------------------------------------------
| TOTAL | 8,667 | 12,12 | 554 | 776 | 100.0% | 100.0% | 9 | 10 |
| | | 6 | | | | | | |
--------------------------------------------------------------------------------
The retail sale of Skano has decreased most in Latvia. In Ukraine one store
removed from Odessa into Kiev. Compared to same period of 2008 the retail sale
has decreased by 28.5% in Q4 2009.
Furniture Production
The Furniture Factory's sales in 4th quarter in the company's basic target
market in Russia and Finland have decreased and clients does not estimate sales
recovering in near future.
Furniture factory sales by countries
--------------------------------------------------------------------------------
| | th EEK | th EUR | % of net sales |
--------------------------------------------------------------------------------
| | Q4 2009 | Q4 2008 | Q4 2009 | Q4 2008 | Q4 2009 | Q4 2008 |
--------------------------------------------------------------------------------
| Finland | 15,334 | 13,750 | 980 | 879 | 49.2% | 37.1% |
--------------------------------------------------------------------------------
| Russia | 10,727 | 15,395 | 685 | 984 | 34.4% | 41.5% |
--------------------------------------------------------------------------------
| Kazakhstan | 607 | 1,787 | 39 | 114 | 1.9% | 4.8% |
--------------------------------------------------------------------------------
| Germany | 245 | 409 | 15 | 26 | 0.8% | 1.1% |
--------------------------------------------------------------------------------
| Others | 499 | 354 | 33 | 23 | 1.6% | 1.0% |
--------------------------------------------------------------------------------
| Subsidiarie | 3,743 | 5,377 | 239 | 343 | 12.0% | 14.5% |
| s | | | | | | |
--------------------------------------------------------------------------------
| TOTAL | 31,155 | 37,072 | 1,991 | 2,369 | 100.0% | 100.0% |
--------------------------------------------------------------------------------
Building Materials Division
The net sales of the Building Materials Division in fourth quarter amounted to
18.3 mil. kroons/1.2 mil. euros and loss to 0.7 mil. kroons/43 thousand euros.
In the same period of the last year, the turnover of the division totalled 18.7
mil. kroons/1.2 mil. euros and the loss 0.8 mil. kroons/51 thousand euros. As
compared to the previous year the turnover of the division has decreased by 0.4
mil. kroons/27 thousand euros and the profit has decreased by 0.1 mil. kroons/8
thousand euros.
Net sales by geographical segments
--------------------------------------------------------------------------------
| | th. EEK | th. EUR | % of net sales |
--------------------------------------------------------------------------------
| | Q4 2009 | Q4 2008 | Q4 2009 | Q4 2008 | Q4 2009 | Q4 2008 |
--------------------------------------------------------------------------------
| Finland | 5,729 | 7,308 | 366 | 467 | 31.4% | 39.1% |
--------------------------------------------------------------------------------
| Estonia | 7,045 | 7,069 | 450 | 452 | 38.6% | 37.8% |
--------------------------------------------------------------------------------
| Portugal | 114 | 634 | 7 | 41 | 0.6% | 3.4% |
--------------------------------------------------------------------------------
| Russia | 2,232 | 1,552 | 143 | 100 | 12.2% | 8.3% |
--------------------------------------------------------------------------------
| Latvia | 455 | 381 | 29 | 25 | 2.5% | 2.0% |
--------------------------------------------------------------------------------
| Sweden | 1,427 | 732 | 92 | 46 | 7.8% | 3.9% |
--------------------------------------------------------------------------------
| Germany | 132 | 113 | 9 | 7 | 0.7% | 0.6% |
--------------------------------------------------------------------------------
| Lithuania | (54) | 278 | (4) | 17 | (0.3%) | 1.5% |
--------------------------------------------------------------------------------
| Ukraine | 115 | 243 | 7 | 15 | 0.6% | 1.3% |
--------------------------------------------------------------------------------
| Other countries | 846 | 373 | 54 | 24 | 4.6% | 2.0% |
--------------------------------------------------------------------------------
| Subsidiaries | 209 | 0 | 14 | 0 | 1.1% | 0.0% |
--------------------------------------------------------------------------------
| TOTAL | 18,250 | 18,683 | 1,167 | 1,194 | 100.0% | 100.0% |
--------------------------------------------------------------------------------
Consolidated statement of financial position
--------------------------------------------------------------------------------
| | Th EEK | Th EEK | Th EUR | Th EUR |
--------------------------------------------------------------------------------
| | 31.12.200 | 31.12.200 | 31.12.2009 | 31.12.2008 |
| | 9 | 8 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and bank | 6,091 | 6,913 | 389 | 442 |
--------------------------------------------------------------------------------
| Receivables and | 18,810 | 19,568 | 1,202 | 1,250 |
| prepayments | | | | |
--------------------------------------------------------------------------------
| Inventories | 41,912 | 68,096 | 2,680 | 4,351 |
--------------------------------------------------------------------------------
| Total current assets | 66,813 | 94,577 | 4,271 | 6,043 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investment property | 2,893 | 2,893 | 185 | 185 |
--------------------------------------------------------------------------------
| Tangible fixed assets | 63,083 | 66,333 | 4,031 | 4,239 |
--------------------------------------------------------------------------------
| Intangible fixed assets | 14 | 21 | 1 | 1 |
--------------------------------------------------------------------------------
| Total fixed assets | 65,990 | 69,247 | 4,217 | 4,425 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 132,803 | 163,824 | 8,488 | 10,468 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debt obligations | 8,048 | 17,722 | 514 | 1,132 |
--------------------------------------------------------------------------------
| Payables and prepayments | 22,742 | 43,646 | 1,454 | 2,790 |
--------------------------------------------------------------------------------
| Short-term provisions | 118 | 115 | 8 | 7 |
--------------------------------------------------------------------------------
| Total current liabilities | 30,908 | 61,483 | 1,976 | 3,929 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current debt | 27,084 | 27,720 | 1,731 | 1,772 |
| obligations | | | | |
--------------------------------------------------------------------------------
| Non-current provisions | 3,303 | 3,421 | 211 | 219 |
--------------------------------------------------------------------------------
| Total non-current | 30,387 | 31,141 | 1,942 | 1,991 |
| liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 61,295 | 92,624 | 3,918 | 5,920 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share capital at nominal | 44,991 | 44,991 | 2,875 | 2,875 |
| value | | | | |
--------------------------------------------------------------------------------
| Issue premium | 5,698 | 5,698 | 364 | 364 |
--------------------------------------------------------------------------------
| Statutory capital reserve | 4,499 | 4,499 | 288 | 288 |
--------------------------------------------------------------------------------
| Currency translation | 406 | 253 | 26 | 14 |
| reserve | | | | |
--------------------------------------------------------------------------------
| Retained profits | 15,759 | 9,717 | 1,007 | 621 |
--------------------------------------------------------------------------------
| Net profit for the year | 155 | 6,042 | 10 | 386 |
--------------------------------------------------------------------------------
| Total equity | 71,508 | 71,200 | 4,570 | 4,548 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND | 132,803 | 163,824 | 8,488 | 10,468 |
| EQUITY | | | | |
--------------------------------------------------------------------------------
Consolidated statement of comprehensive income
--------------------------------------------------------------------------------
| Th EEK | Q4 2009 | Q4 2008 | 12 m 2009 | 12 m 2008 |
| | | (adjusted) | | (adjusted) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| RETURN ON SALES | 54,120 | 62,505 | 205,790 | 280,527 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cost of production sold | (43,293) | (49,588) | (163,337) | (217,647) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit | 10,827 | 12,917 | 42,453 | 62,880 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Marketing expenses | (7,059) | (11,208) | (33,433) | (42,252) |
--------------------------------------------------------------------------------
| General administrative | (1,408) | (1,965) | (5,462) | (6,960) |
| expenses | | | | |
--------------------------------------------------------------------------------
| Other income | 686 | 1,065 | 2,408 | 3,582 |
--------------------------------------------------------------------------------
| Other expenses | (517) | (4,657) | (3,189) | (6,080) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | (2,529) | (3,848) | 2,777 | 11,170 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income and | (206) | (541) | (2,553) | (3,454) |
| financial expenses | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss before taxes | (2,323) | (4,389) | 224 | 7,716 |
--------------------------------------------------------------------------------
| Prepaid income tax | (69) | 0 | (69) | (1,674) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET PROFIT/LOSS FOR THE | 2,254 | (4,389) | 155 | 6,042 |
| PERIOD | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic earnings per share | 0.50 | (0.98) | 0.03 | 1.34 |
--------------------------------------------------------------------------------
| Diluted earnings per | 0.50 | (0.98) | 0.03 | 1.34 |
| share | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Currency translation | (329) | 515 | 153 | 214 |
| differences | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE | 1,925 | (3,874) | 308 | 6,256 |
| INCOME | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Th EUR | Q4 2009 | Q4 2008 | 12 m 2009 | 12 m 2008 |
| | | (adjusted) | | (adjusted) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| RETURN ON SALES | 3,459 | 3,995 | 13,152 | 17,929 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cost of production sold | (2,767) | (3,169) | (10,439) | (13,910) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit | 692 | 826 | 2,713 | 4,019 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Marketing expenses | (452) | (716) | (2,137) | (2,700) |
--------------------------------------------------------------------------------
| General administrative | (90) | (126) | (349) | (445) |
| expenses | | | | |
--------------------------------------------------------------------------------
| Other income | 44 | 68 | 154 | 229 |
--------------------------------------------------------------------------------
| Other expenses | (33) | (298) | (204) | (389) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 161 | (246) | 177 | 714 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income and | (13) | (35) | (163) | (221) |
| financial expenses | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss before taxes | 148 | (281) | 14 | 493 |
--------------------------------------------------------------------------------
| Prepaid income tax | (4) | 0 | (4) | (107) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET PROFIT/LOSS FOR THE | 144 | (281) | 10 | 386 |
| PERIOD | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic earnings per share | 0.03 | (0.06) | 0.00 | 0.09 |
--------------------------------------------------------------------------------
| Diluted earnings per | 0.03 | (0.06) | 0.00 | 0.09 |
| share | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Currency translation | (21) | 31 | 12 | 12 |
| differences | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE | 123 | (250) | 22 | 398 |
| INCOME | | | | |
--------------------------------------------------------------------------------
Einar Pähkel
CFO
+372 447 8331
einar.pahkel@viisnurk.ee
